Table 17-1 provides data about starting salaries for selected professional degrees; in it you can see that PhD economists are paid less than MBAs. If economists are rational, why are they economists? (Institutionalist)

Occupation Physician assistant Dentist Actuarial analyst Management analyst Economist TABLE 17-1 (A AND B) Some Typical Starting Salaries Private or Public Degree Law (3 years) Major firms Small firms Engineering Bachelor's degree $85,000 73,000 50,000 Annual Salary* $160,000 62,500 46,000 44,000 75,000 Secondary school teacher 40,000 Master's degree 85,000 Technical maintenance 24,000 Business Administrative assistant 24,000 Bachelor's degree 45,000 Radio announcer Maintenance and grounds Flight attendant Taco technician 24,000 Master's (MBA) degree (2 years) 90,000 22,000 MD (4 years and 3-year Internship) 135,000 21,000 PhD (5 years) 18,000 In economics 90,000 Retall sales associate 16,000 In humanities 65,000 Sources: Author's estimates based on various sources (pay varies significantly by region). (a) Some Typical Starting Salaries of BAs *These figures are rough estimates based on data from various published sources and informal surveys of author. (b) Starting Salaries for Selected Professional Degrees